EXHIBIT 99
PRESS RELEASE OF PROVIDENT NEW YORK BANCORP
DATED JULY 25, 2005
Provident
New York Bancorp
Provident New York Bancorp
400 Rella Boulevard
Montebello, NY 10901-4243
T 845.369.8040
F 845.369.8255
www.providentbanking.com
News Release
FOR IMMEDIATE RELEASE Stock Symbol: PBNY
July 25, 2005 Traded on NASDAQ National Market
PROVIDENT BANK CONTACT:
Paul A. Maisch, SVP & Chief Financial Officer
Roberta Lenett, VP & Manager of Shareholders Relations
(845) 369-8082
PROVIDENT NEW YORK BANCORP ANNOUNCES
QUARTERLY EARNINGS OF $5.7 MILLION, OR $0.13 PER DILUTED SHARE
MONTEBELLO, NY - July 25, 2005 - Provident New York Bancorp (Nasdaq-National
Market: PBNY), the parent company of Provident Bank, today announced that for
the three months ended June 30, 2005, net income was $5.7 million, or $.13 per
diluted share compared to net income of $3.7 million or $.10 per diluted share
for the three months ended June 30, 2004. This represents an increase of $2.0
million. Included in this increase is an item recorded from the realization of
our investment in a low income housing partnership, as described below in
quarterly non-interest income, of approximately $409,000, net of taxes.
Excluding this item, net income would have been approximately $5.3 million, or
$0.12 per diluted share for the three months ended June 30, 2005.
Net income for the nine months ended June 30, 2005 was $15.9 million, compared
to net income of $6.8 million for the nine months ended June 30, 2004, an
increase of $9.1 million. Diluted earnings per share were $0.36 and $0.18 for
the nine months ended June 30, 2005 and June 30, 2004, respectively. The
increase in earnings in 2005 reflects nine months of operations of Warwick
Community Bancorp, Inc. ("Warwick" or "WSB") following the acquisition of WSB in
October 2004. Earnings in the same period of fiscal 2004 reflect approximately
two quarters of operations of ENB Holding Company, Inc., and Ellenville National
Bank ("ENB") following the acquisition of ENB in January 2004. Earnings for the
2004 period also reflect after-tax charges of $3.0 million relating to the
establishment of the Charitable Foundation in connection with the second-step
conversion, which decreased earnings per share by $.07 in that period.
George Strayton, President and CEO commented: "As we continue to integrate the
acquired banks, we are seeing the positive benefits of operating leverage with a
54.9% increase in net income versus a 34.3% increase in costs. These efforts
have been particularly beneficial in mitigating the impact that the flattening
yield curve has had on net interest margin, which has declined on a linked
quarter basis three basis points to 3.93% for the quarter ended June 30, 2005.
We expect continued improvement in non-interest income and expense containment
as this rationalization process continues over the next several quarters, which
will help to offset margin compression expected as a result of continued Federal
Reserve tightening of short term interest rates."
Provident New York Bancorp Press Release cont.
Total assets as of June 30, 2005 were $2.6 billion, an increase of $733.2
million, or 40.2%, over assets of $1.8 billion at September 30, 2004, and an
increase of $776.7 million, or 43.6%, over assets of $1.8 billion at June 30,
2004. The increase from September 30, 2004 was primarily due to the October 2004
acquisition of Warwick, whose assets totaled $703.7 million on the merger date,
and the purchase of an HSBC Bank USA, National Association ("HSBC") branch
office in South Fallsburg New York, which added $23.3 million of assets in the
third quarter of 2005. The increase over June 30, 2004, was due to (i) the
October 2004 acquisition of Warwick, (ii) internal growth of the Company, and
(iii) the purchase of the South Fallsburg branch. Goodwill increased by $92.7
million from September 30, 2004 as a result of the completion of the Warwick
acquisition, and core deposit intangibles increased by $9.3 million, net of $3.0
million in amortization, from September 30, 2004 as a result of the Warwick and
the South Fallsburg HSBC branch acquisitions.
Net loans as of June 30, 2005 were $1.3 billion, an increase of $312.2 million,
or 31.8%, over net loan balances of $980.3 million at September 30, 2004, and an
increase of $322.0 million, or 33.2 %, over balances at June 30, 2004. Loans
acquired from WSB totaled $288.2 million, while allowances for loan losses
acquired in connection with WSB were $4.9 million, or 1.7% of WSB's outstanding
loan balances. Inclusive of Warwick loans acquired, commercial loans increased
by $212.0 million, or 43.5%, over balances at September 30, 2004. Consumer loans
increased by $46.7 million, or 35.9%, during the nine-month period ended June
30, 2005, while residential loans increased by $58.3 million, or 15.3%. Total
loan originations have increased from $257.3 million for the nine months ended
June 30, 2004 to $346.2 million for the nine months ended June 30, 2005.
However, repayments and sales of loans have also increased from $210.7 million
from the 2004 period to $321.2 million for the nine months ended June 30, 2005.
Loan quality continues to be strong. At $3.2 million, non-performing loans as a
percentage of total loans is 0.25%, as opposed to 0.27% at September 30, 2004
and 0.55% at June 30, 2004.
Securities increased by $313.3 million, or 51.9%, to $916.6 million at June 30,
2005 from $603.4 million at September 30, 2004. Securities acquired from Warwick
totaled $298.2 million. Investments were made primarily in mortgage-backed
securities, which increased by $208.2 million, or 57.7%, and in U.S. Government
and Federal Agency Securities, which increased by $105.1 million, or 43.3%.
Borrowings increased by $162.7 million from September 2004, or 75.7%, to $377.6
million. Almost all of the increase is related to the borrowings assumed from
Warwick.
Deposits as of June 30, 2005 were $1.7 billion, up $508.7 million, or 41.0%,
from September 30, 2004, and $507.4 million, or 40.9%, from June 30, 2004.
Deposits acquired from Warwick and HSBC totaled $475.1 million and $23.3
million, respectively. As of June 30, 2005 retail and commercial transaction
accounts were 29.8% of deposits compared to 30.1% at September 30, 2004 and
29.4% at June 30, 2004.
Stockholders' equity increased by $50.2 million to $399.7 million at June 30,
2005 compared to $349.5 million at September 30, 2004. Shares of common stock
with a value of $74.6 million were issued for the purchase of Warwick. Net
income of $15.9 million and ESOP allocations of $1.5 million for the nine-month
period also increased equity. Partially offsetting the increases were the
payments of cash dividends totaling $5.5 million and a decrease of $3.5 million
in other comprehensive income due to unrealized losses on available for sale
securities. Since September 2004, we have purchased a total of 2.8 million
treasury shares which further decreased stockholders' equity by $34.0 million.
During the third quarter the Company completed its first stock repurchase
program and announced a second repurchase plan for up to 2.2 million shares.
Repurchases for the quarter were 1,656,600 shares for a total purchase price of
$18.7 million, of which 549,000 shares were purchased as part of the second
repurchase plan. Also during 2005, 762,400 shares of restricted stock have been
granted from treasury shares. Tier I capital to assets stands at 9.65% at June
30, 2005.
Provident New York Bancorp Press Release cont.
Income Information - Quarter
- ----------------------------
Net interest income after provision for loan losses for the three months ended
June 30, 2005 increased by $4.8 million, or 29.3%, to $21.0 million for the
quarter ended June 30, 2005, compared to $16.3 million for quarter ended June
30, 2004. Gross interest income increased by $8.9 million, or 44.7%, to $28.9
million for the quarter ended June 30, 2005, compared to $20.0 million for the
same three months in 2004. The increase in interest income was largely due to a
$645.7 million increase in average earning assets to $2.2 billion during the
quarter ended June 30, 2005, as compared to $1.6 billion for the same quarter in
the prior year. The increase is primarily due to the Warwick acquisition and
continued internal growth. The increase in average earning assets was enhanced
by an increase in average yield of 11 basis points from 5.21% to 5.32%, on a
fully taxable equivalent basis. The average yields on the loan and investment
portfolios increased 25 basis points and two basis points, respectively.
Interest expense increased by $4.2 million for the quarter compared to the same
quarter in 2004, as average interest-bearing liabilities increased by $584.0
million and the average cost of interest-bearing liabilities increased by 55
basis points. The tax equivalent net interest margin declined by 38 basis points
to 3.93%, while net interest spread declined by 46 basis points to 3.58%. This
was primarily the result of assets acquired from Warwick being recorded at then
current market interest rates, coupled with the impact of the increase in the
cost of interest-bearing liabilities resulting from the 225 basis point increase
in the target federal funds rate since May of 2004.
Non-interest income was $5.4 million for the three months ended June 30, 2005
compared to $2.9 million for the three months ended June 30, 2004, an increase
of $2.6 million or 89.0%. Deposit fees and service charges increased by $876,000
or 48.7%, of which $442,000 was generated from the acquired Warwick branches,
while $418,000 was primarily due to volume-driven increases in overdraft,
non-sufficient funds, and ATM and debit card fees. Income derived from the
Company's bank owned life insurance ("BOLI") investments increased by $638,000
or 490.7% due to additional BOLI investments of $24.1 million ($13.3 million of
which were added from the Warwick acquisition) and the receipt of death benefit
proceeds. Title insurance fee income derived from the Company's new wholly-owned
title subsidiary, Hardenburgh Abstract Company, Inc. (acquired as part of the
Warwick acquisition), was $361,000 for the quarter. Gains on the sale of
securities were $57,000 for the current three-month period, compared to $446,000
for the same period last year. During the three-month period ended June 30,
2005, the Company also recorded gains on sales of loans totaling $105,000
compared to $61,000 for the same period last year. For the quarter ending June
30, 2005, there was a recognition of $681,000 in income pertaining to our
investment as a limited partner in a low-income housing partnership. The
investment had been amortized quarterly since 1996 in excess of our interest in
the partnership. There was no material impact on any quarter in the affected
periods.
Non-interest expenses for the three months ended June 30, 2005 increased by $4.6
million, or 34.3%, due largely due to the increase in branch locations and
office facilities, as well as staff acquired in the Warwick acquisition.
Compensation and employee benefits increased by $2.2 million, or 36.4%, to $8.3
million for the three months ended June 30, 2005. In addition, there was an
increase in the cost of stock-based compensation benefits of $296,000. Occupancy
and office operations increased by $577,000 or 31.2%, for the three months ended
June 30, 2005, of which $367,000 was attributable to the acquired Warwick
properties. Advertising and promotion increased $299,000 or 58.7%, primarily as
a result of the Company's new brand identity. Merger and integration costs
increased $193,000, or 344.6% primarily due to the acquisition of the HSBC South
Fallsburg branch. Other non-interest expense increased $766,000, or 51.0%, due
to increased overhead relating to the increase in branch locations and
administration costs associated with being a larger bank. These increases were
partially offset by a $133,000 decrease in professional fees due to consulting
fees incurred in 2004 surrounding the Warwick merger.
The efficiency ratio, which excludes securities gains, merger costs,
amortization of intangible assets, the $5.0 million charitable contribution, and
the income from the low income housing investment, and includes the tax
equivalent adjustment for interest income, has improved to 64.5% for the current
quarter from 66.7% for the quarter ending June 30, 2004, reflecting the strides
we have made in combining Warwick and Ellenville into Provident and the
operating leverage derived from those efforts [See attached table].
Provident New York Bancorp Press Release cont.
Income Information -Nine Months
- --------------------------------
Net interest income after provision for loan losses for the nine months ended
June 30, 2005 was $63.9 million, compared to $43.4 million for the nine months
ended June 30, 2004, an increase of $20.5 million or 47.1%. Interest income
increased $31.8 million to $85.2 million for the nine months ending June 30,
2005, compared to $53.4 million from the same period last year. The increase in
interest income was largely due to a $800 million increase in average earning
assets to $2.2 billion during the period ended June 30, 2005, as compared to
$1.4 billion for the same period in the prior fiscal year. The increase is
primarily due to the Warwick acquisition and continued internal growth. An
increase in average yield on earning assets of eight basis points, from 5.17% to
5.24% ($1.8 million), on a fully taxable equivalent basis, also contributed to
the increase in net interest income. Average yields increased in both the loan
and securities portfolios, of 17 basis points and 12 basis points, respectively,
with the overall yield on total interest-earning assets increasing in every
category except for other loans (residential mortgages), which decreased six
basis points in average yield. Interest expense increased by $11.4 million for
the nine months ended June 30, 2005 from $9.4 million for the nine month period
ending June 30, 2004, to $20.8 million, as average interest-bearing liabilities
increased by $703.2 million and the average cost of interest-bearing liabilities
increased 39 basis points. The net interest margin declined by 29 basis points
to 3.98%, while the net interest spread declined by 30 basis points to 3.64%,
due to the assets acquired in the Warwick acquisition being recorded at then
current market interest rates and the increase in short-term interest rates.
This change in short term rates, which affected funding costs to a larger degree
than existing earning assets (which are primarily fixed rate until maturity) was
disproportionably large as compared to the change in longer term market interest
rates, and thus has decreased net interest margin. The Federal Reserve has
increased short term rates nine times since May 2004, increasing the target
federal funds rate from 1% to 3.25%. Conversely, the 10-year treasury rate has
decreased from an average of 4.28% for the nine months ended June 30, 2004 to
4.20% for the nine months ended June 30, 2005. The bank's average cost of
interest-bearing liabilities has increased, and, although the average asset
yields increased this period, they did so at a slower pace due to continued
market pressure. This has been offset somewhat by a greater increase of interest
earning assets compared to interest bearing liabilities Should the yield curve
continue to "flatten," a continued decline in net interest margin may occur,
offsetting a portion of gains in net interest income generated from an
increasing volume of assets.
Non-interest income was $13.3 million for the nine months ended June 30, 2005
compared to $8.5 million for the nine months ended June 30, 2004. Deposit fees
and service charges increased by $2.9 million, or 59.9%, of which $2.2 million
was generated from the acquired Warwick and ENB branches, while $700,000 was
primarily due to volume-driven increases in overdraft, non-sufficient funds, and
ATM and debit card fees. Loan fees and late charges increased by $420,000 or
71.1% largely due to pre-payment penalties. Income derived from the Company's
BOLI investments increased by $956,000 or 226.5% due to the additional BOLI
investment previously discussed. Title insurance fee income derived from the new
Hardenburgh Abstract Company, Inc., was $1.0 million. Gains on the sale of
securities were $369,000 for the current nine-month period, compared to $1.9
million for the same period in the prior fiscal year. During the nine-month
period ended June 30, 2005, the Company also recorded gains on sales of loans
totaling $185,000 compared to $231,000 for the same period last year. For the
year to date ending June 30, 2005, there was income from the low income housing
investment included above in the quarter to date information.
Non-interest expenses for the nine months ended June 30, 2005 increased by $11.2
million, or 27%. Excluding the 2004 charge of $5.0 million, pre-tax, for the
Charitable Foundation, non-interest expenses for the nine months ended June 30,
2005 increased by $16.2 million, or 44.1%, to $52.9 million, compared to $36.7
million for the nine months ended June 30, 2004. The acquisitions of ENB in
January 2004 and Warwick in October 2004 played a major role in the increases in
most categories. Compensation and employee benefits increased by $7.5 million,
or 45.6%, to $24.0 million for the nine month period ended June 30, 2005. The
increase was primarily attributable to the acquisitions. Occupancy and office
operations increased by $2.2 million, or 45.4%, for the nine months ended June
30, 2005, almost all of which was attributable to the acquisitions. Advertising
and promotion increased $1.1 million or 69.7%, primarily as a result of the new
brand identity the Company has unveiled and the additional promotions in the
Orange County market. Amortization of core deposit intangible increased by $1.6
million as a result of acquired deposits. Data and check processing increased
$1.0 million or 38.9%, primarily due to the higher level of services related to
the accounts acquired in the mergers and in the acquisition of the new HSBC
South Fallsburg branch. Other expenses increased by $2.0 million, or 51.1%,
primarily due to increases in correspondent bank expense, postage, telephone
expense, loan servicing and credit report expenses, and insurance premium
expense, all of which directly related to the increased size of Provident Bank
following the mergers. ATM and debit card expense increased $383,000, or 67.8%,
primarily as a result of the increase in the number of accounts.
Provident New York Bancorp Press Release cont.
Note:
In addition to historical information, this earnings release may contain
forward-looking statements. For this purpose, any statements contained herein
that are not statements of historical fact may be deemed to be forward-looking
statements. There are a number of important factors which have been outlined in
previously filed documents with the Securities and Exchange Commission, and
other factors that could cause the Company's actual results to differ materially
from those contemplated by such forward-looking statements, including, but not
limited to increases in anticipated merger integration expenses. The Company
undertakes no obligation to publicly release the results of any revisions to
those forward-looking statements which may be made to reflect events or
circumstances after the date of this release or to reflect the occurrence of
unanticipated events.
Provident New York Bancorp Press Release cont.
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
June 30, September 30, June 30,
2005 2004 2004
------------ ------------ ------------
Assets:
Cash and due from banks $ 51,578 $ 107,571 $ 33,686
Total securities 916,644 603,375 642,028
Loans held for sale 3,684 855 1,385
Loans:
One-to four-family residential mortgage loans 439,097 380,749 383,012
Commercial real estate, commercial business 698,918 486,904 479,689
and construction loans
Consumer loans 176,701 129,981 125,180
------------ ------------ ------------
Gross loans 1,314,716 997,634 987,881
Allowance for loan losses (22,252) (17,353) (17,331)
------------ ------------ ------------
Total loans, net 1,292,464 980,281 970,550
------------ ------------ ------------
Federal Home Loan Bank stock, at cost 18,076 10,247 9,755
Premises and equipment, net 29,810 16,846 16,259
Goodwill 157,993 65,260 65,823
Core deposit intangible 14,887 5,624 6,219
Bank owned life insurance 37,256 13,245 13,116
Other assets 36,986 22,847 23,849
------------ ------------ ------------
Total assets $ 2,559,378 $ 1,826,151 $ 1,782,670
============ ============ ============
Liabilities:
Deposits:
Demand deposits $ 382,393 $ 289,360 $ 276,864
NOW deposits 138,574 83,439 87,851
------------ ------------ ------------
Total transaction accounts 520,967 372,799 364,715
Savings and money market deposits 734,283 533,410 530,283
Certificates of deposit 493,020 333,323 345,829
------------ ------------ ------------
Total deposits 1,748,270 1,239,532 1,240,827
------------ ------------ ------------
Borrowings 377,626 214,909 169,552
Mortgage escrow funds and other 33,788 22,198 29,647
------------ ------------ ------------
Total liabilities 2,159,684 1,476,639 1,440,026
Stockholders' equity 399,694 349,512 342,644
------------ ------------ ------------
Total liabilities and stockholders' equity $ 2,559,378 $ 1,826,151 $ 1,782,670
============ ============ ============
Common shares outstanding at period end 43,848,778 39,618,373 39,638,415
Book value per share $ 9.11 $ 8.82 $ 8.64
Provident New York Bancorp Press Release cont.
Provident New York Bancorp and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
Three Months Ended Nine Months Ended
June 30, June 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Interest and dividend income:
Loans $ 20,302 $ 14,300 $ 59,220 $ 38,651
Securities 8,365 5,646 25,852 14,633
Other earning assets 244 38 136 103
----------- ----------- ----------- -----------
Total interest and dividend income 28,911 19,984 85,208 53,387
----------- ----------- ----------- -----------
Interest expense:
Deposits 4,362 2,137 11,207 5,682
Borrowings 3,281 1,350 9,609 3,719
----------- ----------- ----------- -----------
Total interest expense 7,643 3,487 20,816 9,401
----------- ----------- ----------- -----------
Net interest income 21,268 16,497 64,392 43,986
Provision for loan losses 225 225 525 575
----------- ----------- ----------- -----------
Net interest income after provision for loan losses 21,043 16,272 63,867 43,411
----------- ----------- ----------- -----------
Non-interest income:
Deposit fees and service charges 2,673 1,797 7,613 4,761
Loan fees and late charges 381 186 1,011 591
Gains on sales of securities available for sale 57 446 369 1,894
Gains on sales of loans 105 61 185 231
Title insurance fees 361 0 1,019 0
Bank owned life insurance 768 130 1,378 422
Previously unrecognized low income housing 681 0 681 0
partnership investment
Other 407 255 1,042 563
----------- ----------- ----------- -----------
Total non-interest income 5,433 2,875 13,298 8,462
----------- ----------- ----------- -----------
Non-interest expense:
Compensation and employee benefits 8,277 6,070 24,063 16,523
Stock-based compensation plans 854 558 2,142 2,083
Occupancy and office operations 2,421 1,844 7,028 4,834
Advertising and promotion 808 509 2,620 1,544
Professional fees 523 656 1,801 1,660
Data and check processing 1,184 1,076 3,590 2,585
Stationery and office supplies 305 346 815 785
Merger integration costs 249 56 965 773
Amortization of intangible assets 929 681 3,046 1,468
ATM/debit card expense 322 206 948 565
Other 2,269 1,503 5,899 3,905
----------- ----------- ----------- -----------
Sub-total 18,141 13,505 52,917 36,725
Establishment of Charitable Foundation -- -- -- 5,000
----------- ----------- ----------- -----------
Total non-interest expense 18,141 13,505 52,917 41,725
----------- ----------- ----------- -----------
Income before income tax expense 8,335 5,642 24,248 10,148
Income tax expense 2,676 1,988 8,394 3,377
----------- ----------- ----------- -----------
Net income $ 5,659 $ 3,654 $ 15,854 $ 6,771
=========== =========== =========== ===========
Per common share:
Basic earnings $ 0.13 $ 0.10 $ 0.36 $ 0.19
Diluted earnings 0.13 0.10 0.36 0.18
Dividends declared 0.045 0.04 0.125 0.11
Weighted average common shares:
Basic 42,440,624 37,806,911 43,545,750 36,450,748
Diluted 43,073,358 38,426,183 44,292,686 37,068,663
Provident New York Bancorp Press Release cont.
Provident New York Bancorp and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)
June 30, September 30, June 30,
2005 2004 2004
---------- ---------- ----------
Asset Quality Data:
Non-performing loans (NPLs) $ 3,249 $ 2,737 $ 5,477
Non-performing assets (NPAs) $ 3,342 $ 2,737 $ 5,477
NPLs as % of total loans 0.25% 0.27% 0.55%
NPAs as % of total assets 0.13% 0.15% 0.31%
Allowance for loan losses as % of NPLs 685% 634% 316%
Allowance for loan losses as % of total loans 1.69% 1.74% 1.75%
Capital Ratios:
Equity to total assets (consolidated) 15.62% 19.15% 19.22%
Tier 1 capital consolidated 9.65% 15.91% 16.04%
Three Months Ended Nine Months Ended
June 30, June 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Performance Ratios (annualized):
Return on:
Average assets 0.90% 0.82% .84% 0.59%
Average equity 5.75% 4.24% 5.13% 3.51%
Net interest rate spread (tax-equivalent basis) 3.58% 4.02% 3.64% 3.95%
Net interest margin (tax-equivalent basis) 3.93% 4.31% 3.98% 4.27%
Average Balance Data:
Average assets $ 2,524,522 $ 1,794,947 $ 2,524,684 $ 1,540,303
Average earning assets $ 2,204,193 $ 1,558,537 $ 2,193,168 $ 1,393,056
Average stockholders' equity $ 394,932 $ 346,763 $ 413,084 $ 257,904
Efficiency Ratio
Non-interest expense $ 18,141 $ 13,505 $ 52,917 $ 41,725
Interest & Non-interest income $ 26,702 $ 19,372 $ 77,680 $ 52,448
GAAP efficiency ratio 67.9% 69.7% 68.1% 79.6%
Non-interest expense $ 18,141 $ 13,505 $ 52,917 $ 41,725
less:
merger integration costs (249) (56) (965) (773)
amortization of intangible assets (929) (681) (3,046) (1,468)
Charitable foundation (5,000)
Adjusted non-interest expense $ 16,963 $ 12,768 $ 48,906 $ 34,484
Interest & Non-interest income $ 26,702 $ 19,372 $ 77,680 $ 52,448
add: Tax equivalent adjustment 321 223 824 506
less:
gains on sales of securities (57) (446) (369) (1,894)
gain on low income housing LLP (681) -- (681)
Adjusted income $ 26,285 $ 19,149 $ 77,454 $ 51,060
Adjusted (Non-GAAP) efficiency ratio 64.5% 66.7% 63.1% 67.5%